Developer pitches 75 housing-lot project at Baily Junction; sewer costs and IRB/IRB-like incentives central to feasibility

Patrick Wood, one of three partners on a planned housing development near Baily Junction, told the Coffee County Commission on Monday that market research and local real-estate advice point toward building 5-acre lots with houses priced in the $300,000 to $400,000 range. Wood said the plan would break the parcel into roughly 5-acre lots and that site contours allow for walkout basements on some lots.

The central barrier to moving forward, Wood said, is sewage infrastructure. He told the board his group had been told previously the county or other development at the Silicon Prairie site would provide sewer that could be extended to his property; without that connection the developer said on-site systems or a community lagoon would be required. Wood reported soil test holes with mixed results: several holes showed good percolation but others were clay or rock, which would limit conventional lateral systems on many lots and raise costs.

Wood said the development would seek an Industrial Revenue Bond (IRB) or similar sales-tax rebate on construction materials (an IRB for sales-tax exemption rather than long-term bonded financing). He said an IRB would not be a property-tax abatement in their plan but would be used to lower construction costs by removing sales tax on materials. He also asked the county to consider making the Silicon Prairie sewer system large enough to allow future tie-ins, so multiple developments in the area could connect.

Commissioners, county planning and public-works staff, and local consultant Carl (last name not recorded) discussed options. County staff flagged permitting needs (KDHE, state permits) and said community lagoons are cheaper to build but can present aesthetic and marketability problems for nearby lots. One staff member estimated sewer infrastructure in the corridor could range from several hundred thousand dollars to multiple millions depending on system type and scale; in the meeting an engineer referenced design-cost ranges from roughly $450,000-$500,000 on the low end up to $2 million-$20 million depending on scale, but Wood said exact costs would require further study and partner commitments.

Wood also proposed a local occupancy/inspection process to help buyers qualify for VA and other mortgage financing; he said local real-estate practitioners reported difficulty obtaining occupancy approvals, which can block secondary-market financing.

Why it matters: The county faces a shortage of housing in several price bands. Developers say infrastructure costs are the primary impediment to building market-rate homes in rural areas. County involvement in sewer infrastructure, IRB facilitation or a local inspection program could change the economics of rural subdivisions.

Next steps: Commissioners did not commit funding. Several members asked Wood to pursue partner interest, refine payback and IRB timelines (Wood suggested 10-15 years as an initial payback target for an IRB but said he would re-run numbers), and return with more detailed cost estimates and partner commitments. Staff said KDHE permitting and soil conditions must be part of next steps.